HSBC: 'Central Banks Will Continue To Diversify Modestly Into Gold'

New York (May 10)  HSBC looks for central-bank purchases of gold to accelerate this year. The bank cites data from the World Gold Council showing first-quarter official-sector buying absorbed 45 tonnes. “It appears that dollar-laden central banks will continue to diversify modestly into gold,” HSBC says. “The demand for gold by central banks is a plank in our generally positive gold outlook. Although smaller than jewelry or investment demand, central-bank purchases are steady and absorb significant amounts of bullion. Furthermore those central banks with large gold reserves – virtually all of which are in the OECD (Organization for Economic Cooperation and Development) – show little sign of wanting to sell their gold reserves.”

Source: KitcoNews